In a promising development for the energy sector, developers and power plant owners in the United States are poised to boost utility-scale electric-generating capacity by a significant 62.8 GW in 2024. This projection, unveiled in the latest Preliminary Monthly Electric Generator Inventory by the US Energy Information Administration (EIA), marks a substantial 55% increase compared to the previous year's additions, signaling robust industry momentum.
According to the EIA, solar energy is expected to spearhead this surge, comprising 58% of the new capacity, with battery storage following closely at 23%.
The solar sector is anticipated to witness a historic milestone with a projected addition of 36.4 GW to the grid, nearly doubling last year's record increase. Supply chain challenges and trade restrictions are gradually easing, enabling solar installations to maintain their lead over other generating resources.
The bulk of the new utility-scale solar capacity is slated for three key states: Texas (35%), California (10%), and Florida (6%). Additionally, the Gemini solar facility in Nevada, boasting a planned photovoltaic capacity of 690 MW and battery storage of 380 MW, is poised to become the nation's largest solar project upon completion in 2024.
Battery storage is also poised for a groundbreaking year, with an estimated 14.3 GW set to be added in 2024, nearly doubling the existing capacity. This surge is attributed to increased demand driven by the rising adoption of solar and wind energy. The recent introduction of investment tax credits (ITCs) for stand-alone storage under the Inflation Reduction Act (IRA) has further catalyzed this growth.
Wind energy, although experiencing a slowdown compared to previous years, will still see the addition of 8.2 GW of capacity in 2024. Notable projects include the Vineyard Wind 1 and South Fork Wind offshore facilities off the coasts of Massachusetts and New York, respectively.
In contrast, natural gas capacity additions are expected to reach a 25-year low in 2024, with developers focusing on simple-cycle, natural gas turbine (SCGT) plants for their quick grid support capabilities.
The nuclear sector will see the start-up of the fourth reactor at Georgia's Vogtle nuclear power plant in March 2024, following the commercial operation launch of Vogtle Unit 3 in July of the previous year.
Overall, the forecasted surge in electricity generation capacity, particularly from solar and battery storage, indicates a promising trajectory for the renewable energy landscape in the United States.
